Keeping up with the most recent fundraising trends is crucial for nonprofit professionals in 2023. Over the past three years, the pandemic brought about major changes into our lives. Now that society has started to return to a “new normal”, we’re constantly experiencing changes within the nonprofit landscape. With the light at the end of the tunnel becoming clearer, paying attention to all of the new developments – from in-person events to Gaming for Good – can be vital.
Top 5 Fundraising Trends in 2023
1. A Balance of Virtual and In-Person Events
With closures and restrictions due to the COVID-19 pandemic coming to an end, in-person events are back. Most people say it’s extremely likely that they’ll return to in-person events by the second half of 2023.
Don’t write off virtual events just yet, though! As many of you know, the COVID-19 pandemic limited professionals to virtual gatherings. Some cases proved more beneficits than many had expected – they limited costs, reduced travel times, and allowed organizers to reach larger audiences.
And these virtual events are here to stay. In 2020, the global market size for virtual events was only $114.1 billion. The widespread use of digital communication tools, such as Zoom, is expected to promote the rapid growth of the virtual event industry at a rate of 17-20% per year. This would result in a more than 500% increase in market size by 2030, for a total of ~$658 billion!
Personalized outreach has always been important. Being attentive to your donors’ desires will help you select the proper event for your next fundraiser – whether it’s in-person, virtual, or a mix of both.
2. Flexible Donation Options
Offering a range of options will allow your donors to support your organization regardless of their own preferences and financial situations. About 71% of Americans feel that their paycheck is unable to keep up with inflation. During these trying times, your organization needs to offer your donors other ways to contribute. This might include:
- In-Kind Donations: Non-monetary donations such as goods, services, or expertise.
- Affordable Donation Rates: Offer programs and campaigns with different donation rates that allow everyone to feel like they have contributed. Having more affordable rates can encourage a larger number of people to donate without putting a significant strain on their finances.
- Recurring Subscriptions: Although it may sound counterintuitive, for many organizations, establishing a history of recurring, regular revenue is sometimes more important than the actual amount. Asking your donors to contribute just $5 a month can feel like a pain-free, budget-friendly way for them to continue to pay it forward.
3. Digital Payment Options
Just like in 2022, it’s very important for fundraisers to stay open to a multitude of various payment methods such as cryptocurrency, Apple Pay, Google Pay, and Venmo.
Even with the fall of FTX, a major cryptocurrency exchange at the end of 2022, the overall cryptocurrency market remains strong. About 45% of cryptocurrency donations are for more than $1,000 – and nearly half of all cryptocurrency owners have donated money in the past, compared to only one third of all other investors.
Since the federal government still classifies crypto as property, it’s a highly tax-efficient method for charitable giving. Whether it’s setting up your own wallet or partnering with a cryptocurrency processing company, having the infrastructure to accept these payments can be very profitable.
Mobile giving donations have also increased by 205%, and approximately 26% of all online giving was processed on mobile devices. The future of fundraising is digital. This is why you need a strategy to process these payments to possibly increase the average for your one-time donations.
4. The Rise of Gen-Z
Gen Z is aged 11 to 26, which means they currently make up more than 20% of the US population. This age group is the most racially and ethnically diverse of all time – and they’re also the most well-educated. They’re very involved in social change, social media, ethical consumption, and sustainability.
As time goes on, your nonprofit will need to position your marketing appropriately to attract this growing generation. Some examples of marketing towards Gen Z include ensuring up to date social media accounts, a user-friendly website, and creating more video content.
5. Collaborations with Streamers: Gaming for Good
The gaming industry is worth more than TV and Hollywood. In 2022, Gaming for Good was one of the biggest fundraising trends. Typically, it involves streamers on Twitch broadcasting their gameplay (sometimes 24 hour marathons), giving their followers the option of donating to a nonprofit of their choice.
An example of this is Jingle Jam, an annual charity event that features a two-week-long stream of games, music, and comedy, with all proceeds going towards a variety of charitable causes. In 2022, this event raised a whopping $4.1 million. With the video game industry as large as it is (and growing larger still), this is another trend that shouldn’t be ignored.
Conclusion: Top 5 Nonprofit Fundraising Trends in 2023
2023 presents numerous opportunities for your nonprofit organization to raise funds in new and innovative ways. The combination of virtual and in-person events, flexible giving options, support for digital payment methods, the rise of Gen-Z, and Gaming for Good are all fundraising trends that need to be considered by your nonprofit, so that you can stay ahead in the constantly evolving fundraising landscape. Adapting to these trends will allow your organization to reach a larger audience and optimizing your fundraising efforts in 2023.
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